Buffet about inequality and wages

Once again, I noticed Warren Buffett’s interview. It is possible to disagree with a man who has earned billions thanks to his personal talent and exceptional perseverance, but to understand his position is necessary. I am not very interested in understanding the positions, for example, the SEC, because this is the position of an official, however, a businessman is before us, who is, a supporter of classical capitalism and the priority of market mechanisms.

In an interview with CNN, Buffett discussed the problem of inequality in America. Indeed, this problem really poses a threat to social stability. He wasn’t talking about rich businessmen, he was talking about employees and their wages.

Professionals, caught in the trend, can get gigantic money, by itself, it is not bad, the problem is that there are a huge number of people working at a minimum wage. Their work is necessary, but not valued, and the minimum wage puts families on the edge of survival.

This imbalance certainly creates tension in society. Buffett suggests that the state must influence the situation. In fact, he suggested that the State should pay the lowest paid categories through tax program mechanisms.

Buffett insists that such a scheme is not contrary to the principles of capitalism, which, frankly, is questionable.

Such schemes cannot be the solution. It is possible to silence the problem for a while. The overall structure of the economy will remain unchanged, including the main principle of centralization. Decentralization will help to regulate business processes and restore balance sheets. However real decentralization can mean a loss of power by financial elites, so it is unlikely that such a decision can be taken voluntarily. The trigger could be a powerful crisis that raises questions about the very existence of States. The transition to decentralized governance is then likely, if not inevitable. After all, the shift in economic formation has always been accompanied by crises. 

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